FCA to cut red tape for investment firms in bid to streamline regulation

Volume of legal text cut by 70%

Linus Uhlig
clock • 2 min read

Investment firms are set to undergo a streamlining of the rules about the types of funds that they are required to hold, as the Financial Conduct Authority (FCA) aims to alleviate unnecessary regulation for asset managers.

The FCA has proposed measures that will strip down the rules on the types of funds that firms must hold to maintain financial stability during periods of stress so that they are able to absorb losses.  As the current regulatory capital rules were tailored for banks, "there are large sections which are not relevant to the vast majority of firms", the FCA explained, meaning these rules do not align with the business models of many investment firms. The changes floated by the regulator, which would reduce the volume of legal text by 70%, would not alter the existing rules about the quant...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA considers softer SDR rules for index-tracking funds

FCA considers softer SDR rules for index-tracking funds

Amid ‘challenging’ requirements

Cristian Angeloni
clock 16 September 2025 • 1 min read
FCA: Consumer investment product disclosure system 'not working'

FCA: Consumer investment product disclosure system 'not working'

FCA rules are expected in late 2025

Michael Nelson
clock 11 September 2025 • 2 min read
FCA social media crackdown: Three 'finfluencers' make first court appearance

FCA social media crackdown: Three 'finfluencers' make first court appearance

Case brought as part of FCA-led global crackdown on illegal promotions

Jenna Brown
clock 10 September 2025 • 2 min read